How Can Blockchain Technology Modernize the Airline Industry?
Nov 21, 2017 Posted / 2287 Views
In the recent years, Blockchain from being a public ledger has evolved into a technology, which has taken the finance industry by storm. Today, the Blockchain technology finds its application just about everywhere, transforming the society. These include banking sector, healthcare, music, to storing data.
Each Bitcoin transaction is titled as a virtual ‘block,’ which needs to verified and recorded onto the Bitcoin network. To authorise the transaction, there are a few questions that need to be answered. Such as ‘Is the money there?’ ‘Are both sender and receiver reputed,’ ‘Is the transaction request legitimate,’ and many more. Each computer on the Bitcoin network competes with each other on finding the answers to these questions, and the one, who does first is known as the winning computer, also receive some Bitcoins as a reward. Then that computer adds the digital block on the Blockchain, public, distributed ledger. Additionally, the winner computer broadcasts the proof he or she has obtained for a particular transaction over the rest of the network. After that, the proofs are checked and verified by the network, before queuing the ‘block’ to complete the Bitcoin transaction. Both the sender and receiver parties are assured that the transaction has been screened, and it's complete.
This complete process is virtually next to impossible to manipulate or hack the network, such as spams and spending. At its core, the Blockchain technology transfer funds, safely and in no time.
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Beyond the buzz, Blockchain technology is a sea of possibilities for the airlines. Besides, being the core technology of digital currencies, Blockchain, in the last couple of years, has done well to capture the imagination of top companies in the airline industries. Unlike, the traditional data technologies, the Blockchain is both reliable, shared, mutualised, and durable at the data element level.
Though, the success of digital currencies, it's not baffling to see how the Blockchain ledger eased reconciliation and data sharing. For aviation sector, there are several creative disruptive possibilities that go beyond the financial transactions. Roll, down to check them out:
We always come across episodes of misunderstanding owing to a human error. Even though, in the last one decade or so, with the dawn of the Internet and amidst the nurturing of new technologies, the e-ticketing process has become decentralized, stored in and called for printing the ticket from a massive ticketing database. The Blockchain technology can further enhance this process to tokenize their assets, and better decentralize it. The concept of smart contracts can automatically add business logic-terms and conditions-how the ticket are purchased. Therefore, opens the doors for the ticketing process to be outsourced by their partners, in real time, from being in any part of the world.
The airline companies hold personal data of their customer, therefore, protecting the passenger records is their both ethical and moral duty. Protecting data privacy with Blockchain technology hold great potential, especially the flight manifests and crew information for the safety of the passengers, against any anti-social elements.
Lufthansa, an eminent German airline company, had recently launched a campaign, by the name, BC4A, stands for Blockchain for Airlines initiative. Their primary objective of this initiative is to bring all the segments of the aviation sector to collectively analyse and scrutinise the immense potential of the Blockchain technology. MRO, software developers, service providers, leasing companies, logistics, and aircraft builders, are some of the potential participants of this worldwide campaign. The aim is to build a strong case for the Blockchain technology to be incorporated in the airline industry.
The industry of cargo could be immensely benefited from the Blockchain technology, both for saving money, providing monetary protection, and could evolve, how the cargos are nowadays managed. This technology, could enhance the efficiency, trim down on costs, and lower the risk of frauds.
Wrapping up, from the above highlights, it is fair to make the call that the Blockchain technology can modernise the aviation sector for the betterment-, for both companies and passengers.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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